Skip to Content

Why is it so difficult for Singaporeans to buy a reasonable priced home when its easy for foreigners?

Owning a home to live in has become such a staple of the Singapore lifestyle. Up to a few years ago, housing prices have been reasonably affordable.

Is housing unaffordable?

Lately the price and COV (cash over value) being quoted is absurd. Is it really absurd or is it a matter of progressive inflationary forces that we cannot stop?

My fellow blogger la pappillion blogged about his new house purchase at 568K for a flat that is 30 years old with a COV of 40k. That’s a total of 608k.

He will be paying 2k per month to service this.

My brother is also house hunting and the price he got quoted for a flat near to Buangkok MRT goes in the region of 550k. Buangkok! That’s to a lot of people not living close to be like Jurong West.

Yet more of my friends are doing their BOT rounds and trying to find reasonable price flats.

Now I am sure for my bro and la pappillion who is upper middle-class they should be able to service this. But if this is a progressive inflationary cycle of life then we would expect their mean salary to be around 5-6k per month. That will fit to using 30% of your income to service housing loans safety limit.

If a couple each earns 3k that will make up this 6k total income. If you ask me it is still within the safety limit. There is still money for other things necessary in life.

But if a family does not earn that well or only 1 spouse is working, then that one person would really need earn 5-6k per month to ensure mortgage servicing is at a safe limit.

So in summary my take is:

  1. I been hearing people at age 30 getting 5-6k salary. if that i s the norm then 2k mortgage is not much.
  2. 1 spouse working can service easily if you make 5-6k (pretty obvious there)
  3. We might be blowing things out of proportion here.

Is the rules for foreigners screwing up Singaporeans?

Then you get news like this:

Why PR siblings are allowed to buy HDB resale flat but not S’porean siblings?

Dear Minister Mah,

Lately, there is a cyber discussion on why 2 single PR siblings are allowed to buy resale HDB flat but not 2 single SC (Singapore Citizen) siblings. All involved parties are under the age of 35 years old.

Before I wrote to you in this letter, I did my homework calling up HDB hotline to make enquiry on resale procedure. The officer gave me a direct answer, ‘NO’ for the case involving 2 single SC. But she gave me another answer for the case involving 2 single PR; that they must write in to obtain approval for the resale purchase. The officer may not have given me the answer ‘NO’ but did you see the contradiction here?

I hope the Hon. Minister and the HDB can shed some light on this issue to fellow Singaporeans. Sir, maybe HDB can provide the statistics on each year how many joint-single PR applications have been successful.

Thank you for your attention.

Yours Faithfully,

Tony Keng Hong, Tan
NRIC: S*******H

*Note: Mr Teo (MP for Pasir Ris-Punggol GRC), if you received HDB reply on the statistics, do you mind share with us. Alternatively, can you ask Mr Mah in the next parliamentary session? I am your constituent of Punggol South. Thank you.

Now if there is any truth to this then its not really right. We been hearing news that time and time again the locals have been taken advantage of. Here is another argument for it.

I guess we really need foreigners to increase our competitive edge. There are things locals do best and there are all things foreigners will always do better.

It’s a great concept to ensure that they have a roof over their head while working here or even easily assimilating into our community. Afterall they are less likely to take advantage of any loop holes in the rules compare to Singaporeans, who have time and time again proved that they will exploit these loopholes.

What are you thoughts on this?


This site uses Akismet to reduce spam. Learn how your comment data is processed.


Friday 10th of December 2010

Hi Drizz,

I have a very old Pelican book by the title: "How to Lie with statistics." The last chapter is "How to talk back to statistics" It says by asking these five questions you can prod "the devil in the details" 1)Who say so? 2)How does he knows? 3)What's missing? 4)Did somebody change the subject? 5)Does it makes sense?

My point is no government in the world will present any statiscal data to their people that do not reflect the government's perspective. Or put it bluntly, you people are very "lucky" to have such a "good & clever government."


Friday 10th of December 2010

"Everyone is susceptible to making emotional decisions and then rationalizing them by convincing themselves reason was used." Ministers or no ministers


Friday 10th of December 2010

It's uniquely Singapore.

The quote from our dear Transport Minister: "ERP help Singaporeans own more cars" still rings in my year, and it is my real life example to students how illogical conclusions can be drawn from statistics.


Friday 10th of December 2010

Singapore is a country based on rational statistics if you ask me. But my boss sometimes say the devil is in the details.


Friday 10th of December 2010


I remember when Nikkei IDX was trading around 30000, the housing loans for Tokyo houses were more than 30 Years. It was reported the next generation had to continue to service the loan. I wonder if this true? If so, some 2nd generation (or even 3rd) are servicing the housing loan now. Isn't this situation if is true in Japan now, is equivalent to "ancient slavery" in olden times? From what I know the Japanese may be very Nationalistic (for many reasons) but the Government of the Day is not popular. That's why in one year, the Prime Minister can be replaced more than once. Or usually at least once.

I shudder to think if STI reach 20000, what will happen to Singaporeans? Will we like the Japanese living in Tokyo? Becoming the "slave of ancient time" in the 21st Century. NO JOKE!


Friday 10th of December 2010

now that is a situation that is truly dire. this form of slavery to debt in exchange for happiness. is it really happiness?

This site uses Akismet to reduce spam. Learn how your comment data is processed.